Code of Ethics
When face with major problems and dilemmas in management accounting and financial management practitioners look to the “standards of ethical conduct for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas are the backbone of what management accounting and financial management are made. When faced a possible violation with in this backbone of the ethical standards one should ask themselves two questions,” Will my actions be fair and just to all parties affected?” and ” Would I be pleased to have my closest friends learn of my actions?” (Weygandt D-1) practitioners of management accounting and financial management have an obligation to the public, organization, and themselves to adhere by the ethical standards both domestically and internationally.
When considering the first aspect of the ethical standards competence, a practitioner just as a collegian professor must continue to grow and develop their understanding and knowledge of their skills. They must be professional in their duties and abide by all legal statutes and standards. One must also maintain up to date reports that are clear, revenant, and accurate information.
Secondly practitioners of management accounting and financial management must maintain the highest level of confidentiality. One must not disclose confidential information to anyone in any shape or form unless obligated to do so by law. One must inform the appropriate people when dealing with confidential matters and the monitor the progression of information. Also one must not use or appear to use undisclosed information to gain advantage or to pass to a third party. (d-2)
The next area of ethical standards is integrity. When dealing with integrity practitioners have the responsibility to avoid conflicts and advise potential problems to whom it may concern. Just as a juror in a court case one must not include them self in any action that will cause a prejudice that will influence them ethically. Actions such as accepting presents, money, or possible career advances would break the integrity ethical standards. One is obligated to release all information whether helpful or hurtful and any professional opinion should also be announced. Finally a practitioner must refrain from any action that may discredit the institution.
The last area practitioners must maintain an ethical standard is objectivity. In this area one must communicate fully and objectively. ( D-3) Also a practitioner is not allowed to give any information that may negatively influence the appearance of a report, in correspondence one can not disclose any information that may have some influence on the understanding of a report.
The application of standards of ethical conduct for practitioners of management accounting and financial management must abide by all the aspects of competence, confidentiality, integrity, and objectivity. When a problem arises a practitioner should follow company policy that deals with such situation. Following this code of ethical conduct one will legitimately proper in the profession.
Weygandt, Jerry J., Donald E. Kieso, Paul D. Kimmel. Managerial Accounting: Tools for Business Decision Making. John Wiley & Sons, Inc. 2002.